Social Enterprise Definition

Based on the readings provided on social enterprise, I agree more on the definition of Dacanay than that of defined by Abu-Saifan. While both definitions include solving a social problem and using business principles to be sustainable, Dacanay’s definition emphasized on the triple bottom line effect (i.e. it encompasses not just the less privileged as the beneficiary but also addresses all other social problems such as environmental problems).

Looking at Family Youth Cafe in Taiwan and Human Nature of the Philippines, they both conform to the definition of a social enterprise:

Enterprise with a social mission

Family Youth Cafe aims to solve one of the UNSDGS’s goals to provide decent work to out-of-school youth and provide them opportunity to be trained and eventually be able to find job in line with the skills they acquired from the cafe. Similarly, Human Nature aims to solve poverty and transform the lives of the poor by hiring them as workers and partnering with them as suppliers while providing consumers with organic and affordable personal care products. Founders of these social enterprises were able to create a social design and are indeed committed to create social value.

Wealth-creating organization

A social enterprise’s goal is to solve a social problem while being self-sufficient/sustainable so as not to depend on any grants or government/private financial support. Both social enterprises have business models to generate revenue for them to be self-sufficient. Both have products to offer to be able to generate revenue.

Distributive Enterprise Philosophy

Traditional businesses aim to maximize profit. Social enterprises are more concerned on the social return on investment or social transformation. While solving a social problem is the main goal of a social enterprise, the effect of the solution or how it enhance or add value to its beneficiaries is also an important aspect of a social enterprise. Human Nature allots most of its profit back to the enterprise to be able to expand their beneficiaries. Family Youth Cafe also allots its revenue back to the cafe to be able to help more out-of-school youth.

New insights

Both social enterprises also act as incubators. They provide an environment and opportunity to its beneficiaries not just to be employees/workers but to be become partner supplier and build their own businesses. In this way, they are creating a higher social value as its beneficiaries will be owners of their enterprises and further employ the less privileged and expand its beneficiaries.